Benefit Fraud Offences and Penalties

The following article explains what benefit fraud is, including the type of actions that constitute fraud, how cases will be investigated and the potential penalties for those found guilty of committing the offence.

What is benefit fraud?

Benefit fraud occurs when a recipient of benefits acts dishonestly and deliberately in claiming support that they are not entitled to. The benefits payment office are authorised to investigate such claimants if they believe that fraudulent claims have been made.

Fraudulently claiming benefits is a criminal offence, and is treated in a different manner to benefit overpayments. As the overpayment of benefits may not be the fault of the claimant, the law will not respond so harshly to these type of situations. However, benefit fraud cases are treated very seriously.

The following article explains benefit fraud more thoroughly, including what types of actions constitute fraud, how cases will be investigated and the potential penalties for those found guilty.

Examples of Benefit Fraud

There are a number of ways in which benefit fraud may be carried out. The following are examples of some of the most common types of benefit fraud:

• Withholding or lying about financial circumstances to the benefits office. For example, a claimant may not declare their savings when submitting an application for a benefit.
• Giving false information relating to household circumstances and income. For example, telling the benefits office that you live alone, when you actually live with a partner.
• Providing false evidence to the benefits office such as a false birth certificate in order to claim child benefit.
• Deliberately failing to inform the benefits office about a change in circumstances that would be relevant to the entitlement and receipt of certain benefits.

Benefit Fraud Investigations

It is the responsibility of the Department for Work and Pensions (DWP) to investigate claims of benefit fraud. The department has specifically trained investigators that will analyse all evidence and gather proof to determine whether an individual is fraudulently claiming any benefits. The approach in which a benefit fraud case is investigated is likely to include:

• Evaluations of the claimant's circumstances
• Suspend further benefit payments while the investigation is being carried out
• Arrange an informal interview with the claimant
• Carry out an interview under caution with the claimant

An investigation into benefit fraud can be started at any point, and there are no time limits that investigators need to abide by. This means that if the fraud is brought to their attention several years after it has been made, the investigation can still begin. However, a court case can only be arranged within six years to recover any benefit overpayments.

Potential Penalties for Committing Benefit Fraud

Any person who is found guilty of committing benefit fraud is likely to have also received an overpayment in their benefits, and so both matters will be addressed. The benefits office has the authority to prosecute and recover overpayments.

In more serious cases, the benefits office may refer a benefit fraud case to the Crown Prosecution Service (CPS). This will happen in the following circumstances:

• The overpayment exceeds £2,000, or the claimant refuses to accept a caution or administration penalty for a sum less than £2,000.
• The claimant used false documents in their benefits claim
• The benefits office have found evidence of organised fraud
• The claimant has previously been convicted of a benefit fraud offence

Any person who is found guilty of benefit fraud will be told to repay any overpaid amounts as well as potentially being taken to court and having future benefit payments stopped or reduced. For those who are taken to court, a penalty may be issued up to the value of £5,000.

A stop or reduction in benefit payments may be applied to those convicted of fraud for up to 3 years. The length of time for the ban or reduction will depend upon how many previous offences the claimant has had and the level of fraud that has been committed.